Taxing Energy (English)

This note provides guidance on how to assess a country's current level of energy taxation and formulate a policy framework for its rationalization and expansion. Section two provides an overview of global energy taxes, including a description of the various instruments used, their revenue raising capabilities, and how external costs are included in their formulation. Section three discusses policy considerations for achieving an efficient level of energy taxes such as the choice of tax base and rates, revenue potentials, and other major policy concerns. Section four summarizes key policy advice and annex one provides a distributional analysis of energy taxes.